*A GUEST POST BY AIDEN WHITE*
It’s a dream for every investor to find the "perfect" investment option. But practically, finding such an investment doesn’t actually exist.
Every investor has their specific choices and criteria by which they may consider an investment option suitable. Each investor has their separate risk-taking abilities and mindset about investing. So, there is no such guaranteed investment option that can be proved to be the best.
Is it still a good time to invest in real estate in 2019? At Equity Trust’s recent Wealth Building Summit, Rebecca, the Executive Director of the National Real Estate Investors Association (National REIA), elaborated on her research about the situation of the real estate industry.
She explained that individual investors are concentrating on increasing investment in the real estate market, and the number is growing continuously.
Rebecca also added some forecasts about the real estate investment possibilities in 2019, she explained the following five points:
1. Ignore building more starter homes
The number of homeowners is increasing day by day and they also want to stay in their homes for longer. This information is confirmed by the U.S. Census Bureau, which means the demand for building new starter homes will be much less than expected.
2. Focus on millennials
Millennials account for a total of 68% of first-time home buyers, per the Federal Housing Administration (FHA). Rebecca said that millennials also use a different approach for house shopping and provide value to different amenities.
Millennials usually follow these trends during their housing hunt, as per the FHA:
3. Consider the specialized housing requirements of seniors
Senior citizen population is another important factor among buyers and renters that investors should consider. As per the U.S. Census Bureau, senior citizens may outnumber kids population by 2035, the first time in history.
4. Number of foreclosures are expected to decline
Foreclosures have declined compared to the time of great recession. According to data given by Attom Data Solutions, the foreclosure rate was calculated at 0.51% in 2017, it was 2.23% in 2010.
5. Look out for larger trends
Rebecca advised that real estate investors should do their own research before buying a property. It is best to know the grounds before investing in an out-of-town property. Investors should do proper research about the employment rate in the locality, the geographical information (about natural disasters), and the crime rate of that neighborhood.
Let’s check out 2019 metrics for five major US markets
Dallas/Fort Worth, TX
The metropolitan area gives you a strong economy with steady population growth. The cost of living is low, and the growth of the labor market is good (4.3%) as the cost of doing business is also low.
New York/Brooklyn, NY
New York is popular as an international housing market for foreign property investors. Cost of living is high, so it makes it difficult for booming new construction. But the “city government, the local real estate board, and the construction trade unions are finally working together to increase new supply.”
The occupancy rate is high, and so is the rental income. It is a good option to buy a multi-family investment property. But there are few strict regulations on property investors renting out on Airbnb.
The housing market is balanced. It also has a strong, projected employment growth in 2019.
The number of new residents is increasing as well as the population under the age of 44, which makes the housing market more beneficial for investors. The area is filling with new construction to the house. Job opportunities, affordable housing, and a diverse economy will be helping the real estate market to become profitable for multi-family homes.
Orlando has beautiful scenery, high standard of living, and ambient weather. Orlando is having a population growth at a rate of 7.2%. The city is also becoming a business hub for young professionals with annual job growth of around 4.4%.
Florida has no personal income tax. The housing market is much affordable than other states. Affordability and increasing rental income boost cash flow.
Nashville has higher demands for both long-term and short-term rentals. The city also has the lowest unemployment rate and a strong job market.
Music City is the best place to invest in real estate short-term rentals. Overall, Nashville is an affordable, landlord-friendly housing market.
Data courtesy: mashvisor.com